A Debt Relief Order (DRO) is a quicker, cheaper and simpler route to Bankruptcy. The DRO is available to people living in England and Wales. The DRO was introduced on the 6th April 2009 and the rules were updated on the 1st October 2015. The Scottish alternative is known as Sequestration. If you can afford to repay your some of your debt you may be suitable for an IVA, Debt Management Plan or Protected Trust Deed in Scotland.

You are able to apply for the debt relief order without attending court and paying a £90. Many people entering Bankruptcy are doing so because they have a very low disposable income each month. The fee for the DRO can be paid in instalments before applying for the debt relief order.

To be applicable for the debt relief order a person must;

– Not have unsecured debt exceeding £20,000

– Not have any assets exceeding £1,000

– Not own your property (i.e. Own a home with a mortgage)

– Not have available disposable Income after normal household expenditure exceeding £50

– Be domiciled in England or Wales, or in the last 3 years have been resident or carrying on business in England or Wales

– Not have been subject to a DRO within the last 6 years

Also, you cannot apply for a DRO if you are currently bankrupt, in an IVA or have a current Bankruptcy Restrictions Order or Undertakings or have current Debt Relief Restrictions or undertakings.

A debt relief order (DRO) is a route into bankruptcy which will affect your credit rating.